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Jamary_,2019 ‘David Nicely, Regional Pesiden of Division I Tennessee Operations cHISPSC, LL 44060 Meridia Blvd rank, TY 37067 Ke: Proposed Acquistion of Physitian Regional Medical Center Prepeny located i Knoxville, Temessoe and PIT.OT Leases far Properly Focaned om Mie chrooke Pie [a Kaoxwills, Tennessee : Dear Dovid : ‘This non-hinding loner of wot ("Letter af Buea) willie a a atemant of cae aman) intent rita eepect (os proposed ten ctinn (the Transsecion") eteyy Me Cly of Knoxville (he ity") sid gree t0 purchase frot Mieim Keoxwille IMA, LLC of atbet afilistea eniies of CUSPSC, LLC (collectively, "Seller" Sllers existing medic) eainpus kaowa Ue Physicians Regional Medical Cantar fooated at S00 F, Col TH sAvenue in Knowle, Tennesros (af ere partsulely described herein, the "eree : 1. Fann 90d Poias PTeameation, “The proposed wig of he Teast wre ws described onthe Term Sheer stashed aa Exbibit Ato this Leer ef lent. The'Teei Sheet isfeorporated a pant of Uda Lele of Intent, 2 Public Announecifen, —* * The panes hnrco selnowhedet fiat they do oot intend sn iagne any paves selewe or nal ay public uno auceraent af or relating a dhe Trassaction wiluoul Brel obtsining the approv’ of te clier pany to tis Letter of lve 3 Expems ‘he partis hereo achoowladge that they shall euch pay their own feos and expenses and tase of their apents, advisers, artomeyn and aecrammante with spect to the egobiniua of this Leer of ttcnt and the proposed Tension, 4, Now-Dinding This Leer uf tntent i rsanded 1 be, aud shall be cous nly wa ran-hinding Teter tone supunarizing and evidensig ube discussions hersoen the Ciry and Sole wo te de hereof. Amy ley hinding ohligeticn ofthe parties with respert to he Transaction shall exist only upon che execution saul delivery of definitive ageemeats, ito which cis Caner of lates ad all prior dsczaione shal. merge. Please nore taat the Trawsuetou will nyuire the exprewal ofthe Czy Costs ofthe City, wad the City acknawledpes tharthe Transtotion wil equice vetan approvals of Slle’s gnvering body and alias Wis expressly andavstocd hat chis Late of Tate is dot acount to ease way definiive areemtent or cthense to consummate the"Ivansaction, ae parties will caqperst in negaciating detin tive agreements providing [or te tramuctions contemplated by this Letce of Intent, hut each pary reserves ths right to ‘wit from negotisdons at any tne as elas the right of lina approval or daupproval, far any reuse, of the decurestarion raring tothe Transaction, Please acknowledge thal Ube emus and coniions et forth in thia Letter of Irent act forth the cexsenial tere and conditions serve a the hess Yor futhce negotiations reliing fo Mac Trmseen. Sinoerely, ae CITY OF KNOXVILLE, TENNESSEE By Tide: Acknowledged his day af 2009, ON REHALE OF SELLER: CHSPSC, Le Tae Nicly By ‘Tile: Regigial Presiden. uf DYSision 1 Operolimsin le Stu of Vemnessen erm Shoot Acquistion of repety ‘The Cily will purchase, and Seller wl se, che ral propety and inpeoveweatslvealed within the ses 3 dcpicted om le wap attache hereto ws [Exhibit (he “Prnpeny”, the Iandaries oF ic Property boing highlighted ex: Exit Aiud The City will aequte and aovept auch Property, AS IS, WAERE IS, without representations oF arrantios, cxceping lead seareatis of lle sala representa ae may he conta inthe puruluve und aule agreement relating tthe auchorivaton af Seoe sell and camvey He Pavperty. Seller sall roan ovrnerhip of rain propery at is adjaczat tw ths Pruperty, the boundai f ich celainel properly heing highlighied yah A in yellow The pain ce er hePrpany saath Ge SD ach parry shall bo responsible for the coss ingsirad By iin eamection with the Transaction. ‘Upon request ofthe City, Seller shall intially pay the got ofa le somamitment un survey ofthe Progeny, and in such cave, Uke City shel reimburse Soller fe: the oats thereat a Clocing oF pam curler tem:naion af the eortempinted aprecinent of purge nl sale, ‘Conditions ro Clgsing © ‘Axa coudiih yo osig, 8 City sia be penne tv conduct plea dus Aig eating the Prneny,caing enonrenal asevsmont. com aeee et te ecamiuton ad ‘nila tems, Toast a eucigeog, Seller all rong provi ote Cita assesses. file reponse mse oles ees and rps ins possesion a onl eating to he Property. 13¢ period for ennducting,cc.diligenee sall be 60 days aller Ibe dute of mcecution atthe contenplaed egeetat of purchase und fale andthe closing ie nened te oar thin 9D dopa thorns orm tors ats8 pen byte pri, Ponesion ole Dopey shal be qantd lo tke City ul lasing. ‘The re aekemietge tac a orton ofc Props cealy rriod, leased of occupied by tips, utd pear lo Seller ealernginen the ageemers conte ithe Trnaton, Sor nll ave bed fe sale owns lo the Property fd all posesiory gs ee tun lems ar coin nepal a As a condiuan te ering, the Coy and Solor shall eve entered inva a mnnagensent ateetienl ‘povainiag to the mangemeal am mainleaamve ofall builds and ether inprovements nthe >Broperty within tho arca the bountaict ol which re highlighel iazed on EXHbi¢ attached. The (enol the munygenent agreement call be fra poried of ose year tiem celesing a ‘he prashave ofthe Propery by Uc City, The ruanaement agreement shall provide the the City may terminate the management agreement reiting #0 any suuctues vr olber improveents covere by the oakagement gueenent ond, al dke City’s option, fa the demeiten of aay such improvemeets ‘Tue manigowentagrccmest shall contin such oluerexmy und cond:ems ut the parties shall ngree upon prot Lo exeeutin-af the camteraplaea sgrecmionr of pashace and sale, ‘As a condition to closing, the City shall have delegated Lo The Indstral Developavent Booed af Ihe City of Knoxville, Tennesse (the "IDB" ths authority te nagotiate eco 2) PILOT Leases (be “PTT Year" ating» payers cu of taxes with respect tore (2) pecs ta be slot sud subd by Seller us th propery presealy vw by Seller ovale Miilebook Pike Jn Kaowsile, Tomaso, which propory 8 geneally chown on Exh C athed bot (he *Midelcbronk Proper"). Thenatienacknnoledgetharthe parcels have not been ubsivided, snd ric dy excels ofeach PILOT Lese, Sell sal ease tue sublivisiou osu paces fos the Midleton Property. Ti Cty ages to asst abd coopers, tno cxpsnse “wit he efers af Seller a subdivide Ue Midlebk Prager. Seller shall ets the right ewth PILOT Lease during the Conssuction Period es defined boloy} lo zake sch cages Ue boadeses ouch parcl atmay bo dead ocean uiltate ie develepmeat oF De atcle at dese hero sd in the tom ofthe PILOT Leases tobe approved bythe City. Seller he infrmed the ily tht Seller lends to cae the seston of heal eie Ascites co uc pres, some at ‘sist il provid sorvion resely prow one Proper, and Seller will pes sn each YI. Laate ncaa te constriction af health carefalie on he avoicale parcel within trex (0) years er beeaeeution ofthe PILOT Ages. Back EIEOT Lease sal prove Unt Sele Shall make payments in fica of asf the eh oF the PIL Lense wit eect othe ropes Gat the subject of the PILOT Leu naa ax year of an arnt ena to the lanes presets being paid tothe City ant Kix Coon ihe "County" for tx yea 2018 hated upon an aT ofthe 2018 are to he sped upon by the pasties ati reanonaly allcable tthe pacts sublost fo the PILOT Lease a such pnce bn) beta <gpustcly Sbeisided in 2018, The lent of each 81.7 Lace shall not oxoad 15 year pus acoaniean pried (tho "Consaction Period”) of (he lea af tre (2) years othe all period uf census. Seller sll are in euek PILOT [Lease in a0 porto ofthe pope th isthe subject he PILOT Lease shal be ase Loe ee nposcs withow fr reeehnag akepreper concent of We City. Under the PILOT Lawes, the ggrrgte ana tat Selle stall ecliletogacive saelieive edutiou a vale ee ropa axes wih eset all poptty sublet on LOT acs shal $16,000,000, a he Allooaed between the MLA} Lees by Sellers reonosbly excspable tate Cty. UF Seler us ‘eavived hesiaaium aepegate benefit ofs ich netfee shou areal ropa ons der the PULA Lente rir to th expiration herent, llr shall theeatice make payaen in Hen of fuses the Cay add the Cosy se anouns elf he el propery tes hal vibes wd Ina Neg payable with cet tothe prope HM isda ajar ofthe PIL: Agrecment. ‘The pares aloo ndelge hatte plans und watsir the developmen un eonstusio of zprovements tp each parcel il Eel) i be complete a. he tne of eecuion ofeach PLOT Lasse, std auch event, the appioable FULT Leave shall provide for amendment reco effemuate the lems this Agree aed ply, Ue ealeat necessary, is apices. Seller al ‘be ported wo astgn cach PILOT Lessin whole or is par to aifliaes of Seller, a tmmkey <ieeloporn: any ker enatie that have an rere inthe pmoery thet ie the matt ofthe PIL) Lewe (ie “Ashigees) wy hal suc pate ay receiv the bene of le PIL Lene proved ‘Dar Fe aslgtmne sa wavelet pars, Seer shall demons ho taittion ofthe Cie that Seler will ily aye x alive involvement ia the operation of tbe props ier xo ‘Ue, sumugenen! toast onneship isles or uber Oomporabeamtagemeat. The fom of the VIET Losses sball ean exist tho definive prcharo a sal agroctent pasa ta ‘ehh he Ci ages lo purchase the Propany Goma Selle, und th opproval and vuln of cath PILOT Lease by the IDB and cxonttion of cab PILOT Lease, i sich fxm with such ‘evisons ware neeptel ie Sellerand hei shall ben conto af th closing ofthe Prope. Physicians Regional Medical Center = 800 & Oni HIll AVE. Exhibit a Middlebrook Land - “Tennavs EXAIBIE LN Pema: -